Why Job Order Contracting was developed.
Job Order Contracting (JOC), an alternative to the sealed bid method of procuring facility construction and repair services, was developed by the Federal Government in the 1980s to reduce the processing time and administrative effort required for smaller construction jobs (Source).
That said, JOC has evolved significantly since its early beginnings and many users and vendors have not kept pace. As a result, there are now many ways JOC contracts are procured and administered.
While JOC was developed to speed procurement, it should never be solely for that purpose, especially to the detriment of robust procurement oversight.
When properly implemented and managed, JOC Programs can now 1.) Reduce overall project costs, 2.) Improve quality, 3.) Assure cost visibility, 4.) Enable cost management, 5.) Shorten overall project delivery times, and 6.) Improve overall satisfaction levels of all participants and stakeholders.
Due to the need for negotiations on individual projects and work orders and the lack of a defined scope of work at the beginning of the contract, a robust, collaborative partnering process must be established and maintained for internal and external planning, procurement, and project delivery teams.
Early and ongoing communications are critical to the JOC process to focus parties on a successful, mutually beneficial outcome. A key element in the communications process is a locally researched detailed line-item unit price book. The use of national average price books, area cost factors, city cost indexes, or economic indexes, or assemblies, do not provide sufficient technical or cost information to drive best value outcomes.
Significant research has been conducted on the effectiveness of partnering and locally researched granular cost data to enhance the value and success of JOC Programs from both owner and contractor perspectives. These studies have reviewed construction performance, administrative support, the owner-contractor relationship, and the participants’ satisfaction with the contract.
Learn more about best value JOC solutions and practices…
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